This assignment will include the trading profit, loss account and a balance sheet for the company GlobalAir, and the analysis on these account.

This assignment will also include a brief explanation on why GlobalAir seek to make a profit and then look into what the main impacts for GlobalAir to make a profit are by examining the accounts.

Also this assignment will be talking about the different pricing strategies that GlobalAir should be using.

This assignment will then have a report about an English hotel company which is considering buying one of two hotels either St James’s or the Pyramid hotel which states which hotel offers the best investment prospects which will include a definition of ratio analysis and the ratio analysis of both organisations and an analysis of both hotels costs. (Fixed costs, variable costs and semi-variable costs)

This is the amount of money that GlobalAir is making in sales.

This is the amount of money that GlobalAir is making in sales.

Task one:

GlobalAir Profit and Loss Account: £ £

Sales 130,156

Add the opening stock (42,120) to the purchases (73,953) which will then give the figure of 116,073 then subtract the less closing stock (33,990) from 116,073 which equals 82,083 which is the cost of sales.

Add the opening stock (42,120) to the purchases (73,953) which will then give the figure of 116,073 then subtract the less closing stock (33,990) from 116,073 which equals 82,083 which is the cost of sales.

Less cost of sales

Opening stock 42,120 73,953 116,073

Less closing stock 33,990

Take away the cost of sales from the sales price which will then give you the gross profit (130,150-82,083 = 48,073)

Take away the cost of sales from the sales price which will then give you the gross profit (130,150-82,083 = 48,073)

Cost of sales 82,083

Gross profit 48,073

Add the less costs together to make the total expenses

Add the less costs together to make the total expenses

Less costs:

Heating and lighting 1,234

Postage 268

Motor vehicle expenses 1,446

Insurance 1,598

Rent and rates 3,300

General expenses 1,460

Wages and salaries 18,910

Take away the total expenses from the gross profit to create the net profit before interest and tax.

(48,073 – 28216 = 19,857)

Take away the total expenses from the gross profit to create the net profit before interest and tax.

(48,073 – 28216 = 19,857)

Total expenses 28216

Net profit before

Interest and tax 19,857

GlobalAir Balance Sheet: £ £

Fixed Asset

Plant machinery 9,060

Current assets

Add all of the current assets together to make 39,417

Add all of the current assets together to make 39,417

Cash in hand 65

Cash at bank 3,222

Debtors 2,140

Take away the less liabilities from 39,417 to make 38477

Take away the less liabilities from 39,417 to make 38477

Closing stock 33,990